GBPJPY Approaching 200 MA?

British Pound was seen trading higher during the past couple of sessions against the Japanese Yen.

There was a bearish trend line formed on the hourly chart, which was broken to clear the way for more gains.

UK Consumer Price Index released by the National Statistics posted no change in November 2015, compared with the preceding month.

In terms of the yearly change, there was an increase of 0.1% as forecasted.

Technical Analysis

The GBPJPY pair buyers knocked sellers for an upside move. There was a bearish trend line formed on the hourly chart that was cleared by buyers for an upside move. Currently, the pair is finding sellers near the 100 hourly simple moving average.

A break above the 100 MA could take the pair towards the next bearish trend line which is positioned with the 200 MA.

On the downside, the 183.60 could be seen as a short-term support area, followed by the 50 MA.

UK CPI

Today, there were a couple of major releases lined up in the UK. The Consumer Price Index, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services was reported by the National Statistics. The forecast was slated for a decline of 0.1% in November 2015, compared with the preceding month. The outcome was above the forecast, as there was no change in the CPI.

The report stated “Movements in transport costs and alcohol and tobacco prices were the main contributors to the rise in the rate and falling clothing prices partially offset the rise”.

Overall, the report helped the GBPJPY pair to gain traction and if buyers remain in control more upsides are possible.

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